This sample questionnaire evaluates internal controls for the inventory management processes focusing on: analytical procedures and management and independent controls, inventory type, safeguarding of physical inventory, purchasing process, receiving process, distribution process, goods returned (inwards) process, goods returns (outwards) process, stocktaking process, etc.
Sample questions include: Is there a policy and procedures document for the inventory management system? If yes, inspect the document. Is it communicated to the staff responsible for inventory management? Are all adjustments to inventory approved by senior management? If yes, how is this evidenced?